Starbucks says it’s focused on turnaround after report it explored Chipotle merger

Wall Street was buzzing Thursday about a possible merger that would amount to much more than a hill of beans.

Starbucks said it was focused on its turnaround plan after the Financial Times reported that it explored a potential deal to take over Chipotle Mexican Grill.

“Our team is laser-focused on executing our Back to Starbucks strategy,” Starbucks said in a statement. “We have strong momentum and confidence in our long-term growth potential.”

It added that it typically doesn’t comment on what it described as “rumors and speculation” and said it looks forward to sharing its next earnings results later in October.

The FT reported that Starbucks had hired advisers in recent months to work on a takeover proposal for Chipotle. NBC News hasn’t confirmed the report.

A tie-up between the two companies would mean a massive shake-up in the restaurant industry, which is grappling with consumers’ changing their spending and eating habits.

Before the report emerged, sending shares of Chipotle higher by 6.2%, the company had a total market value of about $39 billion. For comparison, Starbucks’ market value is at more than $105 billion.

Chipotle didn’t reply to a request for comment Thursday afternoon.

A deal would also…

Original source: https://www.nbcnews.com/business